TOKYO: Japanese government bond prices gained on Thursday as the market drew relief from a show of decent investor demand for at an auction for new 10-year debt.
The lowest price at Thursday's 2.4 trillion yen ($20 billion) 10-year JGB auction was a higher-than-expected 100.25, reflecting firm demand.
The tail, the difference between the lowest accepted price and the average price also used as a gauge of demand, tightened to 0.04 from 0.33 at the previous auction. A shorter tail denotes stronger demand.
The market welcomed the firm auction results as it had wanted to check how strong investor demand was at the start of the Japanese financial year, which began on Wednesday.
An overnight advance by Treasuries made on the back of soft U.S. data also shored up JGBs.
The 10-year JGB yield fell 3 basis points to 0.345 percent. The 20-year yield also dropped 3 basis points, to 1.085 percent. ($1 = 119.6400 yen)
Comments
Comments are closed for this article.